Don't set your Business up to Fail!
There are over 900,000 small businesses in the state of Michigan, with over thirty million small businesses nationally. Most small businesses are started in an effort to utilize a skill, trade to fulfil a need, and or a passion for creating a monetization vehicle.
Entrepreneurship comes with substantial financial risks, extraordinary timing of market trends, consumer demand, as well as consideration from the current economic state.
It is not unusual for an entrepreneur to cash out their retirement savings, or place a second mortgage on their residence to kickstart their venture.
In some cases, I have also witnessed individuals burdening themselves with cash advances from high-interest credit cards, and leaning on other types of predatory lending products to fund their business.
So, unless an entrepreneur already has access to capital, as well as a developed knowledge of business practices. Along with the specific expertise of the product or service that they intend on competing in, they have already started their business at a massive disadvantage.
Statistics are stacked against entrepreneurs succeeding in the best economic environments. So without capital, knowledge of the industry, competence in business best practices, social capital ("knowing the right people"), timing, and luck- chances are that your business won't survive.
Most (nearly 90%) of entrepreneurs take a salary of less than $100k annually, so you most likely won't become wealthy either.
Entrepreneurship is very tough, and those reasons are precisely why it is necessary for those seeking to go into the entrepreneurial space to conduct research and invest in both coaching and mentoring.
The problem or excuses presented by most entrepreneurs ultimately begs the question,
*Do I think I know more than anyone else, so none of the above applies to me?
*I am just going to "wing-it" because losing money and precious time isn't a big deal to me.
or, the most famous reason,
*I don't have time.
If you fall into any of those categories, I wish you good luck, because even experienced business people who have started other businesses and have been successful also fail in forming new ventures when they don't utilize these practices.
I don't like using the word "fail," but in this instance, it fulfills the degree of importance that I am attempting to express.
Secondarily, once you realize that every entrepreneur needs business council, and begin seeking out mentors and coaches, don't just choose anyone to fill this role.
There are a lot of aspects of business that can't be adequately coached unless the coach you choose has been in a spot where they had to perform that skill.
How can someone coach on management or leadership when they have never had a single employee?
How can someone teach you about sales or contracts if they have never had a book of business where they used these skills?
How can someone teach something, or even speak with any authority if they have never done it themselves?
Some things cannot be learned by reading books, listening to podcasts, or attending summits. Would you use this same logic with any other profession?
Just because someone has a certificate or a degree for the subject-matter doesn't mean they have done anything within the actual marketplace.
After I graduated from college, I spent nearly ten years in banking. I spoke with business owners almost every day, assisted them with their accounts, and I even managed employees and had a branch profit and loss statement - I thought I knew business.
The truth is, I didn't know anything about business and leadership - even with my MBA and MS in Management until I owned my own business and had employees that depended on me to help set up processes and systems that were not already part of a corporate infrastructure.
You really can't coach something, unless you can speak with a passion that comes from living it. For the first half of my life, I was under the illusion that head knowledge was all someone needed to be successful, but I was wrong. Experience is an invaluable teacher.
Entrepreneurship can be extremely satisfying if done right, and in contrast, it can be a miserable, and burdensome forming you into bondage if you "wing-it" or accept lousy counsel.
I wish you great success in your business endeavor - and remember that business is like anything else in life, you have to put the right plan, systems, and people in place to get its maximum potential.
Think of it like exercising; without the day in and day out adherence to a strict diet and exercise routine, you won't achieve the best results possible.
John F. Hendershot is foremost a follower of Jesus, a husband, father of three, former businessperson and founder of iNFable socks4cause, author of "New Lenses: 52 Personal Challenges, Thoughts, and Convictions of a Humble Sinner" and "Learning While Leading: a compilation of articles" as well as dozens of articles published in professional periodicals.
Mr. Hendershot holds a B.A. from Western Michigan University, an M.S. in Managment and an M.B.A. from Cornerstone University. Mr. Hendershot is passionate about leadership development, social causes, and encouraging while coaching people to pursue their passions.
Mr. Hendershot resides in Holland, Michigan with his family where they are members of Central Wesleyan Church.